The Associated Press June 6, 2012, 06:48AM ET

Home Depot raises buyback, reaffirms 2012 outlook

Home Depot Inc. raised its estimate of how much stock it will buy back this year by $500 million to $4 billion and reaffirmed its fiscal 2012 earnings and revenue forecasts.

The world's biggest home improvement company said Wednesday that it still expects full-year earnings of $2.90 with revenue up about 4.6 percent, implying approximately $73.66 billion.

Analysts polled by FactSet expect earnings of $2.92 per share on revenue of $73.95 billion.

Home Depot said it does not expect the increase in its projected stock buybacks to have a material impact on its fiscal 2012 earnings per share.

The Atlanta company anticipates hitting its long-term goal of a 10 percent operating profit and 15 percent return on invested capital by the fiscal year's end. It now predicts an operating margin of about 12 percent and return on invested capital of approximately 24 percent by fiscal 2015.

Last month Home Depot reported that its first-quarter net income climbed nearly 28 percent as unseasonably warm winter and increased business from contractors and other professional customers boosted results.

Home Depot has 2,254 stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, Mexico and China.

Home Depot shares ended at $48.92 per share on Tuesday. They have slipped 7 percent from their 52-week high of $52.88 set in early May.


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